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Companhia Paranaense de Energia Pfd (ELP)
NYSE:ELP
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Companhia Paranaense de Energia Pfd
(NYSE:ELP)
Rating:72Outperform
Price Target:
$10.00
▲(15.74% Upside)
Positive Factors
Asset Valuation
Copel announced a positive asset rotation involving the Baixo Iguaçu Hydropower Plant, which adds ~1% NPV to the base-case valuation and could potentially result in additional dividends.
Dividends
Copel announced an additional R$1.3bn dividends related to FY24 results, leading to a 4.3% dividend yield and an 86% total payout FY24.
Financial Outlook
Analyst reiterates a Buy rating with a price objective of R$12, reflecting confidence in the company's strategic moves and financial outlook.
Negative Factors
Earnings
Copel reported slightly below estimates 4Q24 operational results with adj. EBITDA at R$1.3bn, down 13% YoY and 5% below BofAe and BBG Consensus.
Companhia Paranaense de Energia Pfd (ELP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.43B
Dividend Yield6.47%
Average Volume (3M)285.56K
Price to Earnings (P/E)12.4
Beta (1Y)0.30
Revenue Growth-5.28%
EPS Growth14.50%
CountryUS
Employees4,396
SectorUtilities
Sector Strength76
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.14
Shares Outstanding335,867,070
10 Day Avg. Volume221,084
30 Day Avg. Volume285,558
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.64
Enterprise Value/Ebitda1.81
Forecast
1Y Price Target
$10.00Price Target Upside15.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Companhia Paranaense de Energia Pfd Business Overview & Revenue Model
Company DescriptionCompanhia Paranaense de Energia Pfd (ELP) is a leading electric utility company based in Brazil, primarily focused on the generation, distribution, and transmission of electricity in the state of Paraná. The company operates in various sectors of the energy market, including hydroelectric power generation and renewable energy initiatives, providing essential services to residential, commercial, and industrial customers. ELP is committed to sustainability and energy efficiency, continually investing in modernizing its infrastructure and expanding its service capabilities.
How the Company Makes MoneyCompanhia Paranaense de Energia Pfd generates revenue primarily through the sale of electricity to its customer base in Paraná, which includes residential, commercial, and industrial sectors. The company earns money through regulated tariffs set by the government, which determine the price of electricity sold to consumers. Key revenue streams include the generation of hydroelectric power, which constitutes a significant portion of its energy supply, as well as revenues from transmission and distribution services. Additionally, ELP may engage in energy trading and enter into power purchase agreements that can enhance its income. Strategic partnerships with governmental and private entities to promote renewable energy projects also contribute to its earnings potential.
Companhia Paranaense de Energia Pfd Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -3.25%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid EBITDA growth, strategic asset divestments, and significant recognition in ESG practices. However, these positives were counterbalanced by increased financial expenses and a temporary delay in the Novo Mercado migration process. Overall, the sentiment is balanced with clear strategic achievements and some financial pressures.Q2-2025 Updates
Positive Updates
Strong EBITDA Growth
EBITDA reached BRL 1.3 billion, a growth of 4.2% compared to the same quarter of last year.
CapEx Alignment with Projections
Capital expenditures in the period were approximately BRL 1 billion, in line with the projection of more than BRL 3 billion by the end of 2025.
Strategic Asset Divestments
Closure of small hydro asset sales as part of Copel's divestment plan, with the sale of the Figueira plant expected to conclude in the third quarter.
Recognition in ESG and Customer Satisfaction
Copel received the best ESG Award for the Electrical sector granted by Exame Magazine and ranked first in Aneel's Ombudsman Award for the third consecutive year.
Migration to Novo Mercado
Initiated migration to Novo Mercado, aiming for higher governance standards and increased share liquidity, pending shareholder approval.
Negative Updates
Increased Financial Expenses
Financial expenses increased by 38.7% due to higher debt for concession renewals, investments, and acquisitions, impacting net income.
Temporary CVM Deferral
The CVM deferred the General Meeting regarding migration to Novo Mercado for up to 15 days due to a request from a minority shareholder, causing a potential delay in the process.
Drop in Net Income
Recurring net income was BRL 452.4 million, down 9.5% compared to the second quarter of 2024.
Company Guidance
In the second quarter of 2025, Companhia Paranaense de Energia (Copel) reported a 4.2% increase in EBITDA, reaching BRL 1.3 billion, alongside a recurring net income exceeding BRL 450 million. The company's CapEx was approximately BRL 975 million, aligning with a full-year projection of over BRL 3 billion. Copel's leverage was reported at 3.1x, attributed to the temporary acquisition of Baixo Iguaçu, with expectations to decrease to 2.9x following asset sales. The company also highlighted successful divestments, including a small hydro asset and asset swaps with Eletrobras, enhancing portfolio efficiency. Further, Copel was recognized with the best ESG Award in the Electrical sector by Exame Magazine, and ranked first in Aneel's Ombudsman Award for the third consecutive year. The transition to Novo Mercado is underway, aiming to unify share classes and increase liquidity. The proposed migration is expected to conclude by the end of 2025, despite a temporary interruption by CVM, affecting less than 0.1% of the company's total capital.Companhia Paranaense de Energia Pfd Financial Statement Overview
Summary
Companhia Paranaense de Energia Pfd demonstrates strong financial performance with robust profitability and efficient operations. The company maintains a solid balance sheet with reasonable debt levels and effective cash flow management. Steady revenue growth and efficient cost management further bolster its financial health.Income Statement
The company has shown strong financial performance in the TTM (Trailing-Twelve-Months) period. The gross profit margin stands at 20.35%, indicating efficient cost management. The net profit margin is 12.73%, reflecting solid profitability. The revenue growth rate is 2.10% from the previous year, showcasing steady growth. Additionally, the EBIT margin is 31.23%, and the EBITDA margin is 24.48%, both of which are robust, indicating strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, indicating a balanced use of debt. The return on equity (ROE) is 11.20%, which is healthy, suggesting effective use of shareholders' funds. The equity ratio is 43.61%, showcasing a solid equity base relative to total assets.78
Positive
Cash Flow
The cash flow statement presents a positive outlook with a free cash flow growth rate of 6.84% over the previous period, highlighting strong cash generation. The operating cash flow to net income ratio is 1.22, and the free cash flow to net income ratio is 1.18, both of which indicate efficient cash flow management and conversion of profits into cash.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.87B | 22.65B | 21.48B | 20.54B | 23.98B | 18.63B |
| Gross Profit | 6.05B | 4.07B | 4.90B | 4.93B | 4.27B | 4.06B |
| EBITDA | 5.50B | 5.17B | 3.96B | 3.64B | 5.64B | 6.61B |
| Net Income | 3.04B | 2.81B | 2.26B | 1.11B | 4.95B | 3.90B |
Balance Sheet | ||||||
| Total Assets | 60.74B | 57.38B | 55.82B | 49.70B | 49.54B | 46.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.90B | 4.16B | 5.65B | 2.68B | 3.49B | 3.22B |
| Total Debt | 20.21B | 17.57B | 15.23B | 12.73B | 12.04B | 10.08B |
| Total Liabilities | 35.18B | 31.75B | 31.63B | 28.57B | 27.36B | 26.53B |
| Stockholders Equity | 25.60B | 25.67B | 23.89B | 20.82B | 21.84B | 19.96B |
Cash Flow | ||||||
| Free Cash Flow | 3.09B | 3.26B | 3.30B | 3.51B | 3.04B | 3.77B |
| Operating Cash Flow | 3.25B | 3.39B | 3.52B | 3.90B | 3.39B | 4.02B |
| Investing Cash Flow | -6.83B | -5.74B | -3.14B | -2.77B | 31.91M | -1.67B |
| Financing Cash Flow | -868.91M | 803.86M | 2.70B | -1.92B | -2.88B | -1.79B |
Companhia Paranaense de Energia Pfd Technical Analysis
Neutral
8.64
Price Trends
8.82
Negative
8.44
Positive
7.39
Positive
Market Momentum
0.06
Positive
45.53
Neutral
27.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELP, the sentiment is Neutral. The current price of 8.64 is below the 20-day moving average (MA) of 8.78, below the 50-day MA of 8.82, and above the 200-day MA of 7.39, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELP.
Companhia Paranaense de Energia Pfd Risk Analysis
Companhia Paranaense de Energia Pfd disclosed 49 risk factors in its most recent earnings report. Companhia Paranaense de Energia Pfd reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Companhia Paranaense de Energia Pfd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.35B | 4.85 | 22.94% | 4.78% | -3.27% | -3.44% | |
72 Outperform | $6.43B | 12.38 | 9.81% | 6.47% | -5.28% | 14.50% | |
71 Outperform | $6.36B | 11.45 | 9.81% | 6.31% | -5.28% | 14.50% | |
65 Neutral | $9.48B | 9.40 | 21.17% | 5.27% | -3.19% | 30.48% | |
63 Neutral | $19.48B | 1,539.18 | 1.06% | 5.55% | 8.86% | ― | |
62 Neutral | C$8.33B | -6.45 | -16.63% | 4.55% | -2.14% | -200.32% | |
58 Neutral | $1.98B | ― | -1.53% | ― | -11.75% | 96.86% |
* Utilities Sector Average
Performance Comparison
ELP
Companhia Paranaense de Energia Pfd
8.64
1.31
17.87%
BIP
Brookfield Infrastructure
30.07
-0.02
-0.07%
CIG
Companhia Energetica Minas Gerais
1.89
0.05
2.72%
HE
Hawaiian Electric
11.45
-0.55
-4.58%
AES
AES
13.30
-3.11
-18.95%
ELPC
Companhia Paranaense de Energia Sponsored ADR
7.98
1.44
22.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.